The US Department of Energy (DOE) announced that it has made a conditional commitment for a loan guarantee of up to $1.5B to Wabash Valley Resources.
The financing, to be provided through the DOE’s Loan Programs Office (LPO) upon certain criteria fulfillment, will go towards the repurposing of an industrial gasifier that will use petroleum coke (petcoke) to create anhydrous ammonia, a crucial material needed for fertilizer production.
Simultaneously, the planned facility will be equipped with technology that will enable it to capture and sequester 1.6 million metric tonnes of CO2 annually.
The $1.5B conditional loan commitment comes from the Biden-Harris Administration’s Investing in America program, and it represents a part of a $2.4 billion fund that Wabash Valley Resources would secure through private investment.
As a home to many retired coal-fired plants, the US State of Indiana has experienced a significant change in its industrial scenery, leading to a drop in employment opportunities for local communities.
With the financial support from the LPO, Wabash Valley Resources intends to construct a plant in the town of West Terre Haute in Indiana, an initiative that is expected to result in over 1,100 direct and indirect job openings in the region.
The project not only has the potential to become the world’s first carbon-negative ammonia production facility, but it would also be the first domestic source of fertilizer supply, a vital development that would serve to power the farming activities in the area referred to as the Corn Belt.
Outlined as a commercial-scale production facility, the plant will be able to produce 500,000 metric tons of anhydrous ammonia per year.
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As potential recipients of the loan commitment, Wabash Valley Resources are required to also develop a Community Benefits Plan (CBP) as part of their agenda.
To that end, the company’s strategy includes providing certification programs for individuals seeking employment, as well as training opportunities offered through collaborations with the Rose-Hulman Institute of Technology, Indiana State University, Saint Mary-of-the-Woods College, and the Ivy Tech Community College.
The jobs generated through this project will also be supported by various unions.
Read more: Indiana Votes Down Bill Seeking More Local Input On CO2 Capture
